Budget

Analog survival in a digital age

From time to time I’d like to launch a thought-provoking idea, just to start a potentially interesting discussion. I haven’t quite figured out the answer to the first one, but here goes. In the light of wildly differing income taxation rates, growing population mobility and decreasing meaning of nationality, are nation states going to start competing for the income tax of the Middle Class, at some point? While this idea might seem out there, just indulge me for one moment and take a ride on my train of thought.

In this age of anything, anytime and anywhere it still astounds me how so many people are prepared to pay multiple times for resources that are available freely and are just a click away. Without giving it a second thought, people happily pay on separate occasions for commodities that were available for free to begin with. Music, for example, has basically become a commodity: wherever you buy a song, it always sounds the same. Yet paying for it in the record store, on iTunes and in Spotify is common … while you can listen to virtually any song at any time for free. Contemporary marketing has really mastered psychological framing.

What is the sensible thing to do when supermarkets start offering buy one get one free promotions on premium non-perishable ingredients? Head over, buy a few and fill up the cart on other products? *wrong* Head over, build up a stock and buy nothing else whatsoever. 🙂 #stickinittotheman

At some point in the future, you might find yourself ruling a country where you are able to take more than 50% of the top of the salaries of all nationals. What to do with all those funds burning a hole in your pocket? Obviously, you first make sure that your budget has a deficit. You’ll soon realize that your nationals still have some disposable income left, which is sacrilege. Additionally, the utility company you sold to your neighboring country has really got you in a pinch, so you might as well pay them off. Here is how is an easy three-step plan to grab some more cash, inconspicuously.

Recuperate your tax income loss by raising the VAT rate again and present it in a policy with a catchy name, like Tax Shift, that promises a net lowering of taxes. Don’t forget to set an elevated threshold, so most people can’t benefit from the lower taxes.

Topic for next class: raise the age of retirement. You’ll be able to collect taxes for additional years, and get this … you’ll save on pension payments. That’s a double whammy 🙂